I. Field of the Invention
The present invention generally relates to financial account systems and related methods. More particularly, the invention relates to systems and methods for transaction triggered cycling of financial accounts.
II. Background and Material Information
Traditionally, financial institutions that issue financial products, such as credit card products, set a default cycle date. The default cycle date may be used by the financial institution for sending out, for example, a credit card statement indicating an outstanding balance and due date for payment. Such default cycle dates may be set to a predetermined period or number of days following the date on which a new credit card account is opened. Setting up a default cycle date, however, with no relationship to transactions made using a financial product can result in various drawbacks. For example, there is a risk of non-payment and/or the accumulation of losses to a credit card issuer, particularly when new credit card users use all of their available credit and fail to pay for their charged transactions.
Accordingly, there is a need to reduce the financial risk associated with issuing new accounts, such as credit card accounts. Further, there is a need to reduce account delinquency and the losses suffered by financial institutions, such as banks and credit card issuers, arising from charge-offs of bad or delinquent accounts.